The vertically-integrated cannabidiol (CBD) business said progress with one particular US partner, a retailer called AATAC, had “surpassed expectations”.
AATAC, which owns Gulf, BP, Sunoco, Circle K and Chevron convenience stores, has “expressed interest” in taking Zoetic’s Chill-branded chew pouches and smokables.
At the same time, New Age Beverages Corporation, a NASDAQ-listed distributor of healthy, natural products, has emerged as another potential stockist.
“In both the US and Europe, our Chill and Zoetic brands are consistently well received and the fact that we now have interest in our range of Chill products from partners such as AATAC and New Age Beverages evidences the scale of the opportunity,” said CEO Tulloch.
The two distributors own around 12,000 stores, though the firm said the “realistic objective” was to stock its CBD products with around 500 a month.
Zoetic said trials were now underway with a contract manufacturer that would allow it to increase capacity to meet its expansion goals.
In the same announcement, the company said the launch of CBD gummies in the UK was generating “significant interest”.
It also said it was on track to begin sales of feminised hemp seeds.
Turning to the legacy natural resources operations, Zoetic said it would recover funds from the business.
Cost-cutting means the Denver East project is now profitable, so the firm will only sell the operation for a “compelling price”.
It is offloading “physical assets”, though the amounts raised are “unlikely to be significant”.
Of more financial importance are the bonds lodged with state authorities.
Around US$270,000 remains outstanding with US$50,000 expected imminently and the balance during the course of this year, Zoetic said.
In afternoon trading, Zoetic shares were 7.5% higher at 7.20p.
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